Exhibit 99.01

LG&E Energy Corp. and Louisville Gas and Electric Company Cautionary
Factors

The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements to encourage such disclosures
without the threat of litigation providing those statements are identified
as forward-looking and are accompanied by meaningful, cautionary statements
identifying important factors that could cause the actual results to differ
materially from those projected in the statement.  Forward-looking
statements have been and will be made in written documents and oral
presentations of LG&E Energy Corp. ("LG&E Energy") and Louisville Gas and
Electric Company ("LG&E") (collectively, the "Companies").  Such statements
are based on management's beliefs as well as assumptions made by and
information currently available to management.  When used in the Companies'
documents or oral presentations, the words "anticipate," "estimate,"
"expect," "objective" and similar expressions are intended to identify
forward-looking statements.  In addition to any assumptions and other
factors referred to specifically in connection with such forward-looking
statements, factors that could cause the Companies' actual results to
differ materially from those contemplated in any forward-looking statements
include, among others, the following:

* Increased competition in the utility, natural gas and electric power
  marketing industries, including effects of: decreasing margins as a
  result of competitive pressures; industry restructuring initiatives;
  transmission system operation and/or administration initiatives; recovery
  of investments made under traditional regulation; nature of competitors
  entering the industry; retail wheeling; a new pricing structure; and
  former customers entering the generation market;

* Changing market conditions and a variety of other factors associated with
  physical energy and financial trading activities including, but not
  limited to, price, basis, credit, liquidity, volatility, capacity,
  transmission, currency, interest rate and warranty risks;

* Risks associated with price risk management strategies intended to
  mitigate exposure to adverse movement in the prices of electricity and
  natural gas on both a global and regional basis;

* Legal, regulatory, economic and other factors which may result in
  redetermination or cancellation of revenue payment streams under power
  sales agreements resulting in reduced operating income and potential
  asset impairment related to the Companies' investments in independent
  power production ventures, as applicable;

* Economic conditions including inflation rates and monetary fluctuations;

* Trade, monetary, fiscal, taxation, and environmental policies of
  governments, agencies and similar organizations in geographic areas where
  the Companies have a financial interest;

* Customer business conditions including demand for their products or
  services and supply of labor and materials used in creating their
  products and services;

* Financial or regulatory accounting principles or policies imposed by the
  Financial Accounting Standards Board, the Securities and Exchange
  Commission, the Federal Energy Regulatory Commission, state public
  utility commissions, state entities which regulate natural gas
  transmission, gathering and processing and similar entities with
  regulatory oversight;

* Availability or cost of capital such as changes in:  interest rates,
  market perceptions of the utility and energy-related industries, the
  Companies or any of their subsidiaries or security ratings;

* Factors affecting utility and non-utility operations such as unusual
  weather conditions; catastrophic weather-related damage; unscheduled
  generation outages, unusual maintenance or repairs; unanticipated changes
  to fossil fuel, or gas supply costs or availability due to higher demand,
  shortages, transportation problems or other developments; environmental
  incidents; or electric transmission or gas pipeline system constraints;

* Employee workforce factors including changes in key executives,
  collective bargaining agreements with union employees, or work stoppages;

* Rate-setting policies or procedures of regulatory entities, including
  environmental externalities;

* Social attitudes regarding the utility, natural gas and power industries;

* Identification of suitable investment opportunities to enhance
  shareholder returns and achieve long-term financial objectives through
  business acquisitions;

* Some future project investments made by the Companies, respectively, as
  applicable, could take the form of minority interests, which would limit
  the Companies' ability to control the development or operation of the
  project;

* Legal and regulatory delays and other unforeseeable obstacles associated
  with mergers, acquisitions and investments in joint ventures;

* Costs and other effects of legal and administrative proceedings,
  settlements, investigations,  claims and matters, including but not
  limited to those described in Note 16 (for LG&E Energy) and Note 12 (for
  LG&E) of the respective Notes to Financial Statements of the Companies'
  Annual Reports on Form 10-K for the year ended December 31, 1997, under
  the caption Commitments and Contingencies;

* Technological developments, changing markets and other factors that
  result in competitive disadvantages and create the potential for
  impairment of existing assets;

* Factors associated with non-regulated investments, including but not
  limited to:  continued viability of partners, foreign government actions,
  foreign economic and currency risks, political instability in foreign
  countries, partnership actions, competition, operating risks, dependence
  on certain customers, third-party operators, suppliers and domestic and
  foreign environmental and energy regulations;

* Other business or investment considerations that may be disclosed from
  time to time in the Companies' Securities and Exchange Commission filings
  or in other publicly disseminated written documents.

* Factors affecting the realization of anticipated cost savings associated
  with the merger between LG&E Energy and KU Energy Corporation including
  national and regional economic conditions, national and regional
  competitive conditions, inflation rates, weather conditions, financial
  market conditions, and synergies resulting from the business combination;

The Companies undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.